**Managing Social Security Benefits When a Loved One’s Capacity Diminishes**
As we age, it’s common for our loved ones to face declining health or cognitive abilities. Managing their Social Security benefits can become a complex task, but with the right guidance, you can ensure they receive the support they need. Here’s a simple guide to help you navigate this process.
### Understanding Social Security Benefits
Social Security benefits are based on the earnings record of the individual. The Social Security Administration (SSA) calculates these benefits using a formula that takes into account the person’s work history and earnings. If your loved one has worked in Social Security-covered employment, they are eligible for these benefits.
### Impact of the Social Security Fairness Act
In January 2025, the Social Security Fairness Act was signed into law. This act eliminates the reduction of Social Security benefits based on the work record of a spouse or former spouse who receives a public pension not covered by Social Security, such as those from the Civil Service Retirement System (CSRS). This change affects about two million beneficiaries and nearly 750,000 individuals who have had their spousal and widow’s benefits reduced[1].
### Managing Benefits for Loved Ones
If your loved one is receiving Social Security benefits and their capacity is diminishing, here are some steps you can take:
1. **Verify Information**
– Ensure that your loved one’s current mailing address and direct deposit information are up to date with the SSA. You can do this online through their personal mySocial Security account without needing to call or visit the SSA[1].
2. **Understand Tax Implications**
– Social Security benefits may be taxable. For single taxpayers, up to 50% of the benefits may be taxable if income is between $25,000 and $34,000. For married taxpayers filing jointly, up to 50% may be taxable if combined income is between $32,000 and $44,000[3].
3. **Consult Professionals**
– Given the complexity of Social Security taxes and benefits, it’s crucial to consult with financial and tax professionals who are versed in Social Security retirement benefits and taxation. They can help mitigate unexpected tax implications and ensure that your loved one’s benefits are managed effectively[3].
4. **Monitor for Changes**
– The SSA will provide ongoing updates regarding the implementation of the Social Security Fairness Act. Stay informed about any changes that might affect your loved one’s benefits.
5. **Seek Assistance from SSA**
– If you need help managing your loved one’s benefits or have questions about their eligibility, you can contact the SSA directly. They offer various resources and services to assist with these matters.
### Conclusion
Managing Social Security benefits for a loved one whose capacity is diminishing requires attention to detail and a clear understanding of the rules and regulations. By verifying information, understanding tax implications, consulting professionals, monitoring for changes, and seeking assistance from the SSA, you can ensure that your loved one receives the support they need. The recent changes brought about by the Social Security Fairness Act can also provide significant relief for many beneficiaries, so it’s essential to stay informed about these updates.
